Thank you for standing by. Good afternoon. My name is Angeline, and I will be your conference operator today. At this time, I would like to welcome everyone to the Silvercorp Second Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] And I would like to turn the conference over to Lon Shaver, President of Silvercorp. Please go ahead, sir.

That's great. Thank you, Angeline. On behalf of Silvercorp, I'd like to welcome everyone to the call this morning. Today, we'll be discussing our second quarter for the fiscal 2025 financial results, which were released yesterday after market close. A copy of our news release, the MD&A and financial statements are available on our website and SEDAR+. Before we jump in, note that certain statements on today's call will contain forward-looking information within the meaning of securities laws. Additionally, please review the cautionary statements in our news release as well as the risk factors described in our most recent regulatory filings. Now to recap our quarterly financial results, we delivered a strong fiscal Q2 with a near record quarterly revenue of $68 million, which was a 26% increase from last year's quarter. This growth was driven by a robust commodity market, which led to improvements in realized metals prices, particularly in China compared to the same quarter last year. In particular, the realized silver price rose by 34%, gold rose by 20%, lead rose by 15% and zinc was up 43%. Silver remains our most important metal and contributed 64% of our Q2 revenue, followed by lead at 20%. Just by comparison, silver was 58% of revenue in last year's fiscal Q2. The results continue to reinforce why investors should own our shares, mainly demonstrating that we provide leverage to higher metals prices through the response in our financial results. Moving down the income statement. Attributable net income for the quarter was $18 million or $0.09 per share. This is up from $11 million or $0.06 per share in the comparative quarter. The increase in our bottom line reflects higher metals prices, a 4% increase in silver sold and a 29% increase in the zinc sold, along with a $4…

[Operator Instructions] The first question comes from Joseph Reagor from ROTH Capital Partners Analyst. Please go ahead.

Lon, congrats on a good solid quarter.

Thanks, John.

I guess first thing on El Domo. So I saw that there was an appeal of the first decision there from the lower court. And then that appeal has been heard, but there hasn't been a resolution yet. When do you guys think you'll get an update? Do you have a rough idea on timing? And then is there additional appeals that could occur? And how might those things impact you guys as far as CapEx spending next fiscal year?

Yes, the appeal was heard on the 17th of October, and we're awaiting a formal ruling to be issued, which we expect to come in the next few weeks. We think it'll find in favor of the government with respect to the validity of the permit. Following that, our understanding is that this case could be picked up by the constitutional court. But how, when and what it would mean from a timing standpoint is unclear at this time. Our view would be that with a positive ruling at this provincial level, we would be in a position to proceed with our expenditure plans starting early next year.

Okay. So that sounds good. And I guess the other thing I saw going through the release was with your license extension at Ying, there's a potential payment required. In the event you guys do have to make that payment, when would you make it? And then would it be something that would roll through like the income statement as a government tax fee? Or would it run through like your cash flow statement from an accounting standpoint?

Good question. On which statement, I have to check on that. We have had the payments in the past. If you go back and look at previous renewals, these are tied into basically the process of identifying the resource base that you're permitting for, and then there is basically a fee associated with that resource. So as you find more and you continue to produce and renew your payments -- renew your permits based on go-forward resources and reserves. Those payments can get triggered. We would expect that we would pay this, I hear, within the next month.

Okay. So your, I guess, fiscal Q3. And then that extension gets you guys through, I guess, 2035 and then you'd have to essentially reapply for another extension. Is that how that works? It's been a little while since you guys had to do one.

Yes. The last one we did was for the TLP Longman mining permit, and that one was renewed in the spring of 2021. So if you look at our materials, there's a schedule associated with these renewal dates. And this was next one up on the schedule. I believe it's a few years until the next one comes up.

Your next question comes from Felix Shafigullin from Eight Capital.

Lon, congratulations on the quarter. Just a couple of quick questions for me. The 129,000 tonnes stockpile, that's been amassed over the past 2 quarters, how long do you think it will take you to kind of work through that?

We are anticipating that we would get through it through the balance of the current quarter and the fourth quarter.

Got you. And while you're going to be working through that stockpile material, should we be expecting mining rates to be kind of in the same range as we've seen in fiscal '25 so far, so kind of 150,000 to 170,000 tonnes per quarter? Or like is that kind of roughly the range that we should be looking at? Or is that -- or would that be potentially reduced while you're working through the stockpile?

No, mining should continue at these rates. The one thing that obviously -- recall in Q4 with Chinese New Year, we usually have slower quarter, and that should be the case again this year from a mining standpoint. So you should work that seasonality into your tonnage forecast for mining. But from a milling standpoint, we're not looking at seeing a reduction in milling rate and plan to run the mill throughout the quarter, for the purposes of getting that catch up.

Yes. And just a quick question on Kuanping, you said there was an amount that was budgeted for, I guess, development activities in Kuanping in fiscal '25. How much did you say that was?

That was $1 million.

Just $1 million. Okay. And that will be focused on -- is that drilling or some like preparatory work?

No, that would be basically mine development. So starting to decline down to the resource areas to further delineate them and with a view to bringing them into reserves and/or production.

[Operator Instructions] I am seeing people who is raising hands, but dropping the question as well.

Okay. Well, we can give a couple more seconds.

Okay. All right. There are no further questions at this time. This concludes the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Well, that's great. Thank you all for tuning in today. If anyone has any further questions, as always, please call or e-mail us. We look forward to hearing from you and look forward to joining you on our Q3 conference call. Have a great day.

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a wonderful day.